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Misskey, which is Japanese-made ActivityPub-enabled social media software, has option to enable ads natively for instance admin.
In most cases, the ads are just non-tracking community ads, like promoting YouTube channel, indie animation, pop-up cafe event, or server hosting service. Usually the ads are matched to instance theme.
People realize that running instances needs money and letting the instance admin to make living from it is acceptable. Having monthly patron oftentimes not enough.
This is different case and country. There are plenty of dead fedi instance from Southeast Asia because the donation itself is not enough as the culture of donation is not the same as Western countries. Most people will just simply use free social media and thinking ads are good tradeoff.
“If you put something on the Internet you are giving up ownership of it.” There are plenty of internet culture outside Western that still respect ownership, people don’t just take random things on internet without permission. Western internet culture =/= entire internet.
Copyright law if done correctly can actually develop culture and innovation.
For example, having a law that forbids big company to patent essential important technology, while allowing small independent creator to protect their IP from big corpo churning out copycats (like a lot of company in China illegally printing merchandise with art from small creator).